The Crypto community is split into Stripe’s decision to launch its own Layer-1 blockchain, with many asking why payment companies weren’t already built on top of existing blockchain networks.
Stripe CEO Patrick Collison said in an X post Thursday that “the existing blockchain is not optimized,” and that he has more broadly handled the use of Stablecoins and Crypto across the Stripe Payment Platform, and announced the company’s new Layer-1 network, Tempo.
“No one wants another chain,” said Joe Petrich, head of engineering at NFT Platform Courtyard.
“The issues you mentioned have already been resolved for the deaths set up to use the blockchain, so there’s no need for another chain to “fix” these issues,” Petrich said.
Stripe CEO is wrong about Solana’s TPS, executives say
Layer-1 blockchain prioritizes security and decentralization, while Layer-2 solutions are designed to maximize speed and scalability.
Collison argued that most blockchains cannot handle the scale of transactions that Stripe requires.
sauce: Jason Zhao
He compared it to Bitcoin (BTC) and about five TPS, about 20 TPS, and new networks like Bass and Solana (SOL) reaching around 1,000 TPS.
Helius Labs CEO Solana Maxi Mert Mumtaz said “it’s hilariously wrong on some dimensions” and “it’s not even close to Solana’s limits.”
Mumtaz may have points as Solana Explorer data shows 3,186 TPS at publication.
However, not all are against the idea. “The tempo of building rails for luxury on-chain payments is a game changer,” said Steve Milton, CEO of Web3 wallet provider Fintopia.
sauce: Crispy
“It’s exactly an infrastructure app like ours, and we need to provide a faster, cheaper, seamless experience,” Milton said. Meanwhile, Cardinal Operations Director Max Segal said, “It looks good here.”
Others wondered why Stripe didn’t choose Tempo to become a Layer 2 network.
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“I want to know why I decided to build my own Balidator set rather than becoming an L2. It’s better to outsource it to make sure the balidators are decentralized and diverse,” said Devansh Mehta of Ethereum Foundation.
Code commentator Leo Lanza asked a similar question.
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“As Ethereum Layer 2, Tempo can create custom TPs and fees paid by Fiat, taking advantage of Ethereum’s network effects, security, interoperability and cost reductions,” Lanza said.
Collison also argued that real-world financial applications for fees in Fiat currency, which makes sense to users, are more valuable, but existing blockchains remove fees for blockchain-specific tokens.
“We hope that Tempo will facilitate payment acceptance, global payments, remittances, microtransactions, tokenized deposits, agent payments and more.
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